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| POLITICS, ETHICS AND SOCIAL RESPONSIBILITY OF BUSINESS
11.2.1 TWO APPROACHES TO MORAL REASONING
There are two broad categories of moral reasoning theories (Figure 11.2). In what follows, we have discussed
the two main theories of moral reasoning.
Moral Theory
Consequentialism
(Teleological)
Non-Consequential
(Deontological)
Precedence
Theory of good
or theory of value
Theory of right
and wrong
actions
Theory of right
and wrong
actions
Theory of good
or theory of value
Figure 11.2 Approaches to Moral Reasoning.
11.2.2 DEFINITION OF CONSEQUENTIALISM OR TELEOLOGY
The idea or concept that rightness or wrongness of action is determined by goodness or badness of its results.
The right action is the one that has the best consequences
The teleological approach is akin to consequentialism and derives from the Greek word telos , which
means end or goal.
11.2.3 DEFINITION OF DEONTOLOGY
The concept or idea that actions are intrinsically right or wrong, regardless of their consequences.
The advantage with consequentialism is that it provides us with a moral standard in which the end
justif es the means. With the establishment of norms and standards, consequentialism lends itself better as a
pragmatic basis of corporate social responsibility. Deontology on the other hand, lays down an absolute or
idealistic basis for ethical behaviour (Figure 11.3).
Moral Standard
Long-term self-interest Greatest happiness for
maximum number of people
T. Hobbes
(ethical egoism)
J. Bentham, J.S. Mill
(utilitarianism)
Figure 11.3 Moral Standards.
11.3 MORAL REASONING AND BUSINESS ETHICS
Business decisions, by their nature, involve ethical considerations because (1) most economic decisions are
choices where the decision maker could have done otherwise, (2) every decision or action affects people and

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